A revised Loan Estimate reflecting a qualifying changed circumstance is hand-delivered to the consumer Tuesday, May 12, for consummation Thursday, May 14. No federal holiday intervenes. Does this satisfy the four-business-day receipt requirement?
Correct Answer
A) No: receipt only two business days before consummation misses the four-business-day requirement
A. Tuesday receipt is too late for Thursday consummation under this requirement. A qualifying reason for revision does not eliminate the receipt deadline. There is also a separate prohibition on providing a revised Loan Estimate on or after the date the creditor provides the Closing Disclosure. That trigger is provision, not consumer receipt. Scope and exceptions: This answer tests a revised Loan Estimate, not whether every late change necessarily delays closing. Permitted treatment of changes on the Closing Disclosure must be evaluated separately. Source: Section 1026.19(e)(4)(ii) — https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
Why This Is the Correct Answer
A. Tuesday receipt is too late for Thursday consummation under this requirement. A qualifying reason for revision does not eliminate the receipt deadline. There is also a separate prohibition on providing a revised Loan Estimate on or after the date the creditor provides the Closing Disclosure. That trigger is provision, not consumer receipt. Scope and exceptions: This answer tests a revised Loan Estimate, not whether every late change necessarily delays closing. Permitted treatment of changes on the Closing Disclosure must be evaluated separately.
Why the Other Options Are Wrong
Option B: Acceptable, provided the borrower initials the revised estimate at the table
Initials at closing do not satisfy an earlier receipt deadline.
Option C: Acceptable: a revised estimate may issue up to 1 day before consummation
One day before consummation does not meet the required interval.
Option D: Yes, if the Closing Disclosure has not yet been provided, regardless of the four-day receipt limit
Absence of a Closing Disclosure does not remove the independent four-day limit.
Exam Tip
A valid reason to revise and timely delivery are separate requirements.
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